Tag Archives: healthcare

Selling The Healthcare … Rip

April 23, 2025 By in Goldman, Great Depression 2.0, Greg Hunter, Positions, XLV, XLV-25-01, ZeroHedge Tags:

Wedge Formation

It’s a bear market; we have non-stop headline induced whipsaws, never-before seen extremes, massive downdrafts followed by (face-ripping) short covering squeezes.

Then, there’s the ‘fatigue’:

“Investor Fatigue Has Set In”: Goldman’s Desk Summarizes The Key Market Themes, link here.

Judging from the links below, the professionals (seem to) have an idea of what’s likely; the other side (the retail side), remains clueless or confused.

‘Depression Cycle Is Here’ Charles Nenner Warns “It Will Be Much Worse In 2026”, link here.

As Professional Traders Panic Sell, Retail Investors Just Can’t Stop Buying., link here.

The recent sharp recovery has shown us where to go for short-side opportunity.

One such sector, is the healthcare industry (not advice, not a recommendation).

Health Care Select Sector SPDR, XLV, Daily

The wedge is obvious.

Typical classical analysis market guidelines for wedge:

Whatever direction was the entry, that’s the (most likely) direction for exit (not advice, not a recommendation).

If there is a downside exit, we’ll discuss measured move(s) at that time.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

Economic ‘Implosion’

January 15, 2025 By in $SPSIBI, Biotech, Great Depression 2.0, LABD, LABD-25-01, SPBIO, Uneducated Economist, Wyckoff, XBI, ZeroHedge Tags: , , , , 1 Comment

Collapsing On Several Fronts

‘Retail’, selling silver, link here.

Jewelry whacked, link here.

Loan Shark, link here.

You know it’s bad when booze takes a hit, link here and here.

Producer prices launch higher, link here.

Lumber prices collapse, again, link here.

Travel restrictions, link here.

Then, there are ‘valuations’, link here.

Also then, there’s this, link here.

Lastly, short squeezes and liquidity traps … bear market behavior, link here.

Speaking of ‘short squeeze’, we had biotech do just that in the pre-market (and regular) session.

Biotech XBI, Daily

If it really is/was a short squeeze, once shorts are covered, the expectation is for price to continue lower (not advice, not a recommendation).

Included in the chart, is a bit of insight you’re not likely to find anywhere else.

Note the distance of each retrace after a leg down. Less each time and Fibonacci multiples.

As stated yesterday, XBI posted outside down. That means price action penetrated the lows of the prior session and closed lower.

As wild as it may seem, penetrating the lows and closing lower, put XBI in Wyckoff ‘spring’ position.

That’s what we saw with today’s action.

As this post is being created (11:45 a.m., EST), XBI action continues to erode to the downside currently trading at the 87.60 – area.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

A Tale of Two Markets

December 16, 2024 By in $SPSIBI, Artificial Intelligence, Biotech, LABD, LABD-24-21, Semiconductors, SOXX, SPBIO, XBI Tags: , , , ,

SOXX Powering Higher, XBI Pivoting Lower

To borrow from the Dickens classic:

It was the bullish of times, it was the bearish of times.

Bulls have regained control of the semiconductors (SOXX) for now and negated the ‘false breakout’ analysis link here.

Meanwhile, bears have moved into biotech XBI; currently testing underside resistance and axis line.

Since the active trade (LABD-24-21) is in biotech, we’ll review that market (not advice, not a recommendation).

Biotech XBI, Weekly

The weekly shows us the ‘Axis Line’ has been part of XBI price action for at least three years.

Moving on to the daily, more detail.

Biotech XBI, Daily

There was (decisive) downside penetration, November 15th. Then, an attempted recovery that so far, has failed.

The notation ‘Short?’, was the date of this post.

As the semiconductors battle over who’s in control, for biotech, the bears seem to have established a foothold (not advice, not a recommendation).

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

Curtains For Biotech?

November 27, 2024 By in $SPSIBI, Biotech, Holiday Turns, LABD, SPBIO, The Daily Sceptic, The List, The Speck, XBI, XBI-24-01 Tags: , , 1 Comment

Today, Is ‘Day 13’

Strange things happen in the markets just before, during, or just after a holiday week.

This time is no different.

With all that’s gone on in the past few weeks, one gets a sense ‘the jig is up’.

One example of the curtain being pulled back on a well-established grift, is this unrelated, but related post, link here.

So, it could be with biotech.

The past two weeks look like a change of character (not advice, not a recommendation).

Biotech XBI, Daily

It’s been a Fibonacci 13-Days since the reversal on 11/11.

The sector has accelerated to the downside on record volume and now, is testing that break.

The ‘Axis Line’, is also the location of the 61.8%, retrace for the current down-move and test.

Although there’s been no new daily low to ‘confirm’ the test is complete, (upside) risk may be at a low.

Positioning

For reasons to be covered in a later update, this sector’s being shorted directly as opposed to using leveraged inverse LABD (not advice, not a recommendation).

Trade is labeled: XBI-24-01

Stop level for the short is (or will be) the session high, currently at XBI 99.79 (not advice, not a recommendation).

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

Biotech … Set-Up, Part II

October 2, 2024 By in $SPSIBI, Artificial Intelligence, Biotech, LABD, LABD-24-19, Semiconductors, SOXS, SOXS-24-17, SOXX, SPBIO, XBI Tags: , , , ,

Testing Trendline

Biotech never made it to the 99.75-area from the last update.

However, it did post an up-thrust, topping out at 99.65, just 0.10-pts from target.

This is how it is … for the scientific types, good luck with calculating where the market ‘should’ go. 🙂

Evidently, getting within 0.10-points from a 38.2% retrace was ‘good enough’; XBI reversed from there.

Biotech XBI, Daily

If this is a trendline of some importance, we’re still in the very early stages (not advice, not a recommendation).

Anything can happen and XBI, could close higher.

A new daily low was posted early in the session and price action is currently attempting to ‘spring’ off that low.

Positioning

As noted, a short is open (LABD-24-19); it may be a ‘day trade’ if XBI does not close lower for the day (not advice, not a recommendation).

Separately, based on price action, SOXS-24-17, was closed with a 13.1%, profit (not advice, not a recommendation).

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279